We refer to our announcements made on 28 December 2020 and 9 February 2021, Hong Seng Industries Sdn Bhd (a wholly-owned subsidiary of the Company) (“HS Industries”) had on 28 December 2020 issued a letter of acceptance to accept a Letter issued by Northern Corridor Implementation Authority (“NCIA”) in relation to its interest to secure a federal land located at Kedah Rubber City (“KRC”) for the purpose of setting up a nitrile butadiene latex (“NBL”) manufacturing plant (“Proposed KRC NBL Project”) and HS Industries had subsequently on 9 February 2021 entered into a Pre-Contract Agreement with PH2 Global Limited (“PH2”) for the purpose to engage PH2 to conduct a feasibility study in relation to the Proposed KRC NBL Project (“Announcements”).

Further to the Announcements, the Board of Directors of Hong Seng (“the Board”) wishes to announce that HS Industries has on 16 February 2021 accepted the Letter of Offer issued by NCIA (“Letter of Offer”) for the sublease of an industrial land located at KRC for a period of 60 years (with an option to renew for a further period of 30 years) for a total cash consideration of RM45,572,472.00.

Details of the announcement are set out in the file attached.

This announcement is dated 16 February 2021.